XRP Poised for Potential 10% Rally Upon Surpassing Two Key Levels
The digital currency market witnessed an extraordinary run during the past few months as the crypto-mania has gripped the entire world. Bitcoin, the oldest and most popular digital currency, captured headlines and the attention of investors as it reached unprecedented highs. Among bitcoin’s cohorts, Ripple’s XRP attracted investors’ interest, fomenting excitement and hope over the possibility of a surge in its price.
In particular, two crucial levels must be breached for XRP to experience a significant rally of more than 10%. The first one is the psychological barrier at the $1.00 mark, while the second one is a technical level just above this point. If XRP can overcome these levels, investors can expect enormous gains.
In recent months, XRP has defied the dominant bearish trend experienced by cryptocurrencies. After breaking the $0.75 resistance level in November 2020, the digital asset has been trading higher, gaining traction with increased trading volume, and eventually hitting its all-time high of $1.96 in April 2021. This impressive rally was halted by the broader market correction, crushing the dreams of those who hoped to see XRP surging higher.
However, the recent positive price action has led crypto experts to become increasingly bullish on XRP. Market analysts are convinced that the digital asset now stands on the cusp of an impressive rally after staging a strong recovery from its lows. Many reasons fuel these convictions, including the strengthening technical outlook and the expanding brand ecosystem.
Technical indicators show that XRP has already left behind the gloomy days of consolidation, and the tide has indeed turned in its favor. Upon examining the daily time frame, one can see the formation of a bullish trend with higher lows, meaning that XRP has strong upward momentum. Additionally, the imminent crossover of the 50-period and the 100-period moving averages also adds weight to the bullish bias.
From the fundamental perspective, Ripple Labs, the company behind XRP, is making strides to strengthen its ecosystem. By working closely with various governments and financial institutions, the company has proven that it is not just another speculative digital asset. Ripple’s United States expansion, integration with SBI Remit, Coins.ph, and Mobile Money, and the cross-border trial between the Central Bank of Nigeria, the United Arab Emirates’ central bank, and the Bank of Ghana, are just a few examples of its progress.
The company’s foray into non-fungible tokens (NFTs) further boosts investor confidence. By providing tools and services for NFT creation, tokenization, and auction, Ripple aims to cater to the rapidly growing NFT market. With the increasing adoption of NFTs, Ripple’s XRP token is bound to garner investor interest, setting the stage for an incredible rally.
However, for XRP to put crypto investors’ fears to rest and chart a new course for itself, the digital asset must surpass two crucial levels. The foremost is the psychological $1.00 level. This barrier has remained steadfast since XRP’s tumble from its all-time high in 2018. Breaking through the critical $1.00 threshold will have a significant and positive psychological effect, potentially drawing in more potential investors and raising market confidence in the digital asset.
The second level, which is the immediate resistance, is the key Fibonacci retracement level of 27.2% at $1.05. This level comes from the swing high seen in April 2021 to the swing low established in July 2021, during the massive sell-off phase that obliterated the gains of many digital assets, including XRP. If the cryptocurrency can manage to break through this resistance, it can pave the way for an impressive rally ahead.
Both these levels have consistently impeded XRP’s upward surge, so once they are transcended, the digital asset can be expected to enjoy a massive influx of investment, driving its price upwards with the possibility of a 10% increase or more.
Undoubtedly, market participants are desperate to see Ripple’s XRP step out of the shadows and entrench itself as a major cryptocurrency. While breaching these two critical levels will not guarantee a spot among the top digital currencies, it will certainly pique the curiosity of investors who have been hesitant to join the XRP bandwagon. And once the breakout occurs, XRP’s market outlook will turn undeniably positive, further igniting investor interest and making a 10% rally more likely.
In conclusion, there is a strong case to be made for an impending XRP rally. The digital asset has been steadily gaining momentum and has a slew of positive factors going for it. However, in order to achieve this potential 10% surge, XRP must first overcome these two crucial levels. For now, the crypto-world’s eyes are glued to XRP as it stands on the precipice of a significant advance.